President Bola Ahmed Tinubu has requested the House of Representatives’ approval for new external borrowing of $2.3 billion, alongside a $500 million debut sovereign Sukuk in the international capital market. The appeal, contained in a letter read by Speaker Tajudeen Abbas, seeks authorization under Sections 21(1) and 27(1) of the Debt Management Office (DMO) Act, 2003.
The President said the new funds will finance the 2025 Appropriation Act, refinance maturing Eurobonds, and diversify Nigeria’s funding sources through Islamic finance instruments. He noted that the 2025 budget allows for $9.27 billion in total new borrowings, including $1.84 billion earmarked for external loans.
Tinubu proposed multiple options for sourcing the funds, including Eurobond issuance, loan syndication, bridge financing, or direct borrowing from international financial institutions. The request also includes refinancing Nigeria’s $1.118 billion Eurobond, issued in 2018 at 7.625% and maturing in November 2025, to avoid default and maintain debt sustainability.
Highlighting past successes, the President cited the government’s domestic Sukuk issuances, which raised N1.39 trillion since 2017 for critical infrastructure projects, mainly roads. The new international Sukuk, he said, will bridge infrastructure funding gaps and deepen the country’s investor base. If the ICIEC credit guarantee is utilized, 25% of proceeds will repay expensive debt obligations, while the remainder will finance pre-identified infrastructure projects.
Tinubu assured lawmakers that the Ministry of Finance and DMO would work closely with transaction advisers to secure favorable terms and pricing in line with market conditions.
